How Do You Grow a Premium Brand ?Akshay Pandey 2014003Ankur Mukherjee 2014007Nikita Bindal 2014215

Company Background

Transition was a series of ultra-premium health clubs Target-Senior executives, frequent business travellers and singles People who liked the extra attention for a premium price Located in all major cities across the world Enjoyed first mover advantage Elite organization-No competition Fee structure-$600 initiation fee, plus $2500/year for membership Operated through 5-star Printemps Hotels

Case Background

Transition started facing problems Margins were shrinking Sales growth had flattened Operating expenses rose Pay premium to chefs and coaches

Fitworth new campaign targeted Transition Customized and affordable fee structure Reciprocal membership alliance with Japan’s Mind and Body spas & England’s True Worth clubs

Clarkhouse entered the Health Club segment Top-rated hotel chain Available at more than 250 locations

Problem Statement

How to make Transition profitable again?

Available alternatives

Tie-up with Ambassador

hotels• Well respected international chain• Segment lower than Printemps or

Clarkhouse• Opportunity for expansion• Different target market• Package pricing

Remain a Niche• Continue operation as before without

compromising on pricing or reputation

Our Solution

Collaborate with Ambassador to start a new chain of Health Club New brand shouldn’t be linked to Transition Should be in line with Ambassador’s image Competitive pricing (Clarkhouse) This way it can compete in both segments

Way Ahead for Transition

Add sports training and/or beauty treatment (Parlour)to Transition’s services Test in remote locations, implement if successful Children & wives become members as well as Future prospects for Transition Advertise Transition as a niche family health solution This would help in bringing the average age down without hampering reputation